VIDHYADHAR NAGAR SHRI SWETAMBER JAN KALYAN SANSTHA,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 1439/JPR/2024

AI Insights

The case involves an appeal by Vidhyadhar Nagar Shri Swetamber Jan Kalyan Sanstha against the order of the CIT(E), Jaipur, which rejected their application for registration under section 12AB of the Income Tax Act, 1961. The CIT(E) had also cancelled the provisional registration previously granted. The Tribunal noted that the assessee was not provided adequate opportunity to be heard, which constituted a violation of the principles of natural justice. The Tribunal decided to restore the matter to the CIT(E) for a fresh adjudication, contingent upon the assessee obtaining the necessary registration under the Rajasthan Public Trust Act, 1959.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469941 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL
• Assessee Lawyers: SHAILESH MANSTRI
• Keywords: Opportunity of being heard; Principle of natural justice; Competent authority
• Section: 12A

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 1439/JPR/2024 Vidhyadhar Nagar Shri Swetamber Jan Kalyan Sanstha Vidhyadhar nagar SS Sanjay GA 95, Opp, Laxmi Clinic Bhawani Nagar, Sikar Road, Jaipur. cuke Vs. The CIT Exemption Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAFAV6266P vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby :Shri Shailesh Manstri, C.A. jktLo dh vksjls@Revenue by: Smt. Runi Pal, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 18/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 01 /04/2025 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. This appeal is filed by the assessee against the order of the Learned Commissioner of Income (Exemption), Jaipur [herein after referred to as “ld.CIT(E)”] dated 29.09.2024 thereby rejecting the registration under section 12AB of the Income Tax Act, 1961 (in short “Act”). 2. The assessee has raised the following grounds of appeal:- 2 ITA No. 1439/JPR/2025 Vidhyadhar nagar Shri Swetamber Jan Kalyan Sanstha vs. CIT(E) “1. That the Ld. CIT(E), Jaipur, has erred in facts and in law by cancelling the application u/s 12A(1)(ii)(B) for permanent registration and also cancelling the provisional approval under section 12A(1)9ac)(vi) of the Income tax Act, 1961. 2. That the appellant craves to add, amend, and alter the grounds before or at the time of appellate hearing.” 3. Now coming to the merits of the case, the brief facts of the case are that the assessee filed an online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 27.03.2024 under clause 12A(1)(ac)(iii). A letter/notice dated 17.06.2024 was issued at the e-mail/address provided in the application requiring the assessee to submit certain documents/explanations by 26.06.2024. In compliance to thereof, the assessee had requested to adjourn the case through ITBA portal dated 25.06.2024. The case was adjourned on 08.08.2024 notice dated 31.07.2024. But, this time on given date the assessee had failed to furnish the reply. However, the case was again fixed on 20.08.2024 vide notice dated 11.08.2024. In this connection, the assessee had submitted its point wise reply which was thoroughly examined on record and found some discrepancies. These discrepancies were conveyed to the assessee vide show cause letter dated 09.09.2024 wherein date of hearing was given 17.09.2024. After giving notice, the assessee had submitted their replies on the above show cause which was 3 ITA No. 1439/JPR/2025 Vidhyadhar nagar Shri Swetamber Jan Kalyan Sanstha vs. CIT(E) not found tenable. Conclusively, it is noticed that the ld.CIT(A) rejected the assessee’s application by observing as under:- ‘’04. In view of above discussion assessee’s claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds:-  Registration under Rajasthan Public Trust Act, 1959.  Object for the benefit of particular community. 0.5 Further 12AB(1)(b)(ii)(B) of the Income Tax Act, 1961 also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier registration. Thus, it is clarified that applicant’s provisional registration unde4r clause (vi) of clause (ac) of sub-section (1) of Section 12A of the Income Tax Act, 1961 dated 06-04-2022 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional registration, thus with this order provisional registration is also lapsed and cancelled.’’ 4. During the course of hearing, the ld. AR of the assessee mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and thus the order should be quashed being ex-parte order and against the principles of natural justice. Further, the ld. AR of the assessee stated at Bar that the assessee trust is particularly of Jain Community and the assessee trust is in the process of applying the registration under RPT Act before the competent authority and it is likely to get the same. Conclusively, the ld AR of the assessee prayed that the assessee trust may 4 ITA No. 1439/JPR/2025 Vidhyadhar nagar Shri Swetamber Jan Kalyan Sanstha vs. CIT(E) be provided one more opportunity to the contest the case before the ld CIT(E) and restore the appeal to the file of ld CIT(E) for afresh adjudication as the assessee was ex-parte before the ld. CIT(E) 5. Per contra, the ld. DR relied on the order of the ld. CIT(E). 6 After hearing both parties and perusing the materials available on record, we noticed that the ld. CIT(E) has rejected the assessee’s claim of registration u/s 12AB of the Act on following grounds:- * Registration under Rajasthan Public Trust Act, 1959  Object for the benefit of particular community. It is also noticed that the ld.CIT(E) has cancelled the provisional registration of the assessee for the reason that the assessee trust had failed to give proper justification for regularization of provisional registration. It may be noted that the ld.AR of the assessee submitted that the assessee trust has applied for registration under RPT Act, 1959 before the competent authority and the assessee trust is likely to get the same. . Therefore, in these circumstances, we restore the matter back to the file of the ld. CIT(E) with the direction that as and when the assessee trust produces the copy of the Registration under RPT Act, 1959 then the application of the assessee trust for registration u/s 12AB of the Act be decided afresh in accordance with law. The assessee trust is also directed 5 ITA No. 1439/JPR/2025 Vidhyadhar nagar Shri Swetamber Jan Kalyan Sanstha vs. CIT(E) to produce the complete Form 10AB and produce the documents relating to the genuineness of the activities etc. before the ld CIT(E) 7. Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 01/04/2025. Sd/- Sd/- ¼ jkBkSM+ deys'k t;UrHkkbZ ½ ¼MkWa-,l-lhrky{eh½ (RATHOD KAMLESH JAYANTBHAI) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 01/04/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Vidhyadhar Nagar Shri Swetamber Jan Kalyan Sanstha, Jaipur. 2. izR;FkhZ@ The Respondent-CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. vk;djvk;qDr¼vihy½@The ld CIT(A) 5. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZQkbZy@ Guard File (ITA No. 1439/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "